Brand mergers: Examining consumer response to name and logo design

Machado, J. C.; Lencastre, Paulo de; Carvalho, Leonor Vacas de; Costa, Patrício

http://hdl.handle.net/10400.14/10527

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Authors

Machado, J. C.

Lencastre, Paulo de

Carvalho, Leonor Vacas de

Costa, Patrício

Abstract(s)

It is critical to investigate reactions to the various name and logo redeployment alternatives available in the context of a brand merger. Yet research on this topic is relatively limited. This paper aims to start filling this gap in the literature, by developing a typology of the visual identity structures that may be assumed in the context of a merger, as well as an exploratory study (n = 467) analysing consumers’ preferences regarding the alternative branding strategies. It uses an innovative design, which gives respondents freedom to choose their preferred solution. Results suggest that there is a clear preference for figurative logos. Furthermore, there is evidence that the logo may play a role as important as the name in a merger, ensuring consumers that there will be a connection with the brand’s past. Data also show that the choice of the logo reflects consumers’ aesthetic responses, whereas the choice of the name reflects consumers’ evaluation of the brand’s offer or off the brand’s presence in the market. These results should guide managers in the evaluation and choice of the postmerger branding strategy.